the first year of operation for a small company yielded a loss of \$5000. The company has \$15,000 per year tied up in fixed costs and spent 40,000 on raw materials and labour. Since the company was not well known, they were only able to sell 500 units of their product that year. It is hoped that business with improve next year and that 1500 units will be sold at the same selling price as last year.
a) If 1500 units are sold next year, what will the profit be?